In yesterday’s blog, we provided a number of tips for post-secondary students on how to budget for the back-to-school season. With everything from tuition to residence fees, those going to college and university have some of the largest expenditures of just about anyone this time of the year.

With the help of business reporter Madhavi Acharya-Tom Yew of The Toronto Star, we looked at some ways that students can stretch their dollars as far as possible. Acharya-Tom Yew, herself, got some advice from a number of sources including Lawrence Engel, the Vice President of Personal Lending at TD Canada Trust and Alan Kaplan, the associate professor at the Ted Rogers School of Business Management at Ryerson University.

In her report published last week, Acharya-Tom Yew reveals that “the average cost of a four-year undergrad education for students living away from home is now estimated at about $80,000.” According to Engel, “The numbers continue to creep up and up and up. The amount of savings that either the child or parent is important but there’s often a shortfall.”

Kaplan advises that to properly budget for such major costs, students must prioritize. Clearly, tuition, living accommodations and books should be at the top of the priority list. Those staying on campus will have more to save for than if they are able to remain living at home while going to school.

A few ways to help out with proper budgeting include checking out the federal government’s Education Cost Calculator or speaking to a student financial officer or advisor at the school. Any help is good help, of course. But getting advice from professional sources is the best kind of help.

What if university is still a few years away? Of course, it is makes sense to begin saving for your post-secondary education before the time comes to go to college or university. But high-schoolers and saving money are not generally two things that make a common match. Acharya-Tom Yew notes that “Registered Education Savings Plans are a popular choice for parents of young children. Investments can grow tax-free and the government pitches in, too.”

Kaplan adds that school children need to start young when it comes to financial planning. During their high school years, students should be encouraged to find part time jobs to teach them both responsibility and the concept of saving money and budgeting for important expenses.

Says Kaplan: “I’m a big believer that if we can encourage young people to take ownership of their own finances and some pride in achieving goals, they will be able to do that through their lives.”

It’s official. Today is the last day of August. And although we have another 21 days to go before we can call the glorious season of summer over, everyone knows that with September starting tomorrow, the school year is about to begin. It’s pretty hard to still call it “summer” when you are in the classroom, isn’t it?

It’s even harder, however, to budget for school when there are so many expenditures to consider when starting to study all over again. The Toronto Star’s Business Reporter Madhavi Acharya-Tom Yew reported on the various ways in which students can save money this school year in an article published last week. We’d like to share some of those tips with back-to-schoolers today.

College and university students, especially, have plenty to budget for. From tuition to textbooks to transportation, a student’s expenses can add up in a hurry. One of Acharya-Tom Yew’s first tips for the post-secondary student is to “buy new to you.” In other words, as long as it serves your purpose, pick up used books, clothing or even furniture for your dorm room at a much cheaper prices than those for brand new items.

“Brown bag it,” she continues. Too often, students forget how much money they spend on buying lunches each and every day. As always, the cost of food adds up. Packing your own lunches and bringing them to school with you is both a cheaper and healthier option. You also won’t have to wait in line to be served, so it’s a time-saving practice as well.

Keeping in touch is always important to students. With the advent of such free online features as Facebook and Twitter, this has become easier in recent years. However, a cell phone plan that meets your basic needs is also often a necessity. Acharya-Tom Yew also advises that you buy a long distance card to reduce your phone bills.

Smart shopping is obviously the key here. Shopping online to browse items and compare prices is also advisable. Searching for the best deals to take advantage of savings, especially those targeting students, will help you to stretch your dollars. Student discounts are rampant during this time of year.

Acharya-Tom Yew reminds students to “be sure to flash your student ID at entertainment venues, on public transportation and anywhere else that will take them. Check out special deals through your student union (as well as) free entertainment in the city, and free events hosted on campus.”

The same can be said about the classic coffee-splurge. Students need to be alert. And as such, many often partake in a daily coffee. For some, this is done several times a day. Of course, this can also put a dent into one’s budget. Acharya-Tom Yew recommends that you “avoid the latte effect and buy a coffeemaker or a kettle to make your own.”

In today’s edition of The Toronto Sun, Stefania Moretti discusses one of those life necessities that most of us wish we could avoid: taxes. We know it’s not tax time yet, but we always advise that you keep your financial records in check so that it’s easy to file your taxes when the time comes. Moretti, however, does provide some insight on to how Canadians can keep more of their money longer.

Interestingly, depending on where you live in Canada, your tax situation can change. She writes that high earners in British Columbia have it the best as “the combined federal and provincial tax is below $15,000 for someone making $70,000” this year. Citing the PricewaterhouseCoopers’ annual Tax Fact and Figures guide, she notes that “Ontarians enjoy the second-best rate at $15,492.”

However, if you earn more than “$150,000 a year, Alberta is the place to be with taxes of $45,304.” She reveals that this western province is tops when it comes to claiming an inheritance. Alberta’s probate fees are apparently pretty low. $400, to be exact, regardless of the value of the estate. Moretti notes that “the average probate fee in Canada is more than $3,500.”

When it comes to tax incentives for research, development, entertainment and media, Ontario leads the nation. Like B.C., Ontario is known for its entertainment industry as film makers often visit to make their movies in the province. As Moretti reports, movie producers get a “25% tax credit on all qualifying production costs as well as a 40% interactive digital media tax credit and a 35% film and television tax credit.”

What about those who are in the market for a new house? Says Moretti, New Brunswick is the best province for buying homes when it comes to taxes. The land transfer taxes in this east coast province are the lowest in the country. Buyers pay only $1,065 for a $400,000 home, she writes.

No matter where you are in Canada, however, the personal and corporate tax rates are fairly modest, especially when compared to those in the United States. According to Dale Meister, a tax services partner with PricewaterhouseCoopers in Calgary, the corporate rates in Canada are between 28 and 30 per cent.

Down south, these rates are generally in the 45% area. So naturally, it is common for people to complain about taxes. Some refer to the taking of taxes as “legal theft”. But, to be fair, our many taxes do help pay for important social requirements like the health care system that we, as Canadians, are so proud of.

But, let’s face it. Paying taxes isn’t much fun. It is important to know, however, that there are ways to soften the blow of your tax payments. Unfortunately, B.C. and Ontario residents will have the blow of HST to compound their tax obligations this year. As Moretti reveals, “”the HST will cost British Columbians an extra $320 a year while residents in Ontario will pay an extra $290 after transition payments run dry.”

If you were to walk into a bank today seeking out a business loan, it would be advised that you better come prepared. That is, prepared to put a lot on the line to secure your money.

Since our inception, Synergy Merchant Services has touted the concept of an alternative source of extra working capital that does not put the business owner at great risk. We offer a simple and convenient alternative to getting money for Canadian entrepreneurs. Of course, banks are traditionally known for only wanting to provide loans to businesses that are not necessarily in need of the money.

That way, the bank is at less risk of not having the money paid back. One of the things that is required of a business owner looking to get a loan is collateral. This essentially ensures that the owner is at risk, not the bank. If payments cannot be made, something of great value, be it the business itself or even the owner’s home could be up for grabs!

Imagine having to put your house on the line. It sounds like something someone would do on an over-the-top trip to Las Vegas! With Synergy’s merchant cash advance program, no collateral is necessary. Putting up your home or business is not something we would ever ask. We wouldn’t mind, however, if you invite us out for dinner after our money takes your company to greater heights!

A standard credit check is also a general requirement of a bank when it is considering lending money. This obviously is a question of one’s credibility. Does the bank believe – based on your history – that you are capable of making timely payments? Remember, you are borrowing their money. The money is never truly yours. Therefore, if your history doesn’t show that you are credible enough to make those payments, your loan is not likely to come your way.

Most business owners despise the idea of a credit check simply because it initiates a “knock” against their credit scores. Many can’t imagine why a harmless check of one’s credit history is regarded as a negative thing. Neither can we. Imagine having a police check done on your behalf to naturally find that you have never been in trouble with the law. Meanwhile, the check itself somehow has made you to be considered more likely to be a criminal. Doesn’t make sense, does it?

To be approved for a merchant cash advance, Synergy does not require a standard credit check. More specifically and more importantly to business owners, this means that one’s credit bureau rating is not affected. Keep in mind that when you are receiving a cash advance, you are not borrowing money. The money has been advanced to you based on your previous Visa, MasterCard and Interac transactions.

Essentially, we are forwarding you cash that we are aware you will be making eventually. You are simply paying the money back through your future credit and debit sales, so your “credibility” never really comes into question.

We understand that the majority of our potential clients are simply used to the concept of getting a business loan. To some, the merchant cash advance is still a foreign concept. It’s time, however, to try something new. Give yourself the benefit of opening your business to a new option. See if a merchant cash advance is right for you. No collateral, no credit check required.

On February 10th, we blogged about the benefits of buying a franchise. With notes from Business.com’s Nate Waymire, the Synergy Merchant Services Blog worked to highlight some of the attributes that make purchasing a franchise a wise choice for entrepreneurs in this new decade.  QMI Agency’s Stefania Moretti strengthens our view in today’s edition of The Toronto Sun.

She points out that starting your own business requires the raising of a fair bit of capital. Opening a franchise, however, helps for upstart business owners to have the advantage of running a business with a proven track record as a means to secure profits.

Explains Moretti: “Franchising is a business model whereby a company or individual (franchisor) licenses the right to use a trademark, brand and operating system for a fee to a franchisee. Franchised business accounts for 40% of all retail sales, or $90 billion per year, and 10% of Canada’s Gross Domestic Product, according to the Canadian Franchise Association.”

Evidently, franchises throughout Canada are proving to be lucrative ventures for many franchisees. This is especially true for owners of Tim Hortons locations throughout the nation. According to Moretti, the Canadian coffee and donut shop is “arguably Canada’s most famous franchise.” The cost to open one, in fact, is close to the half a million dollars mark.

Nevertheless, the pressures associated with a recession-laden economy over the past year has encouraged more entrepreneurs to buy into franchises as a way to better determine their future economic successes. According to Lorraine McLachlan, CFA president and chief executive, the “demand for franchises remained strong even through the height of the financial meltdown.”

Said McLachlan: “The recession created the desire within people to control their own future…their own finances.” For would-be business owners, it is important to know what types of industries are the best to become involved in. Moretti points out that the CFA’s annual directory listed the top five franchise growth categories as seniors and home, business consulting, retail, health/fitness and nutrition and food.

This weekend, the CFA is hosting a Franchise Show at the Toronto Congress Centre to further assimilate entrepreneurs with the concept of buying into a franchise. If you haven’t yet started up your own business, attending this show may be the very first step you need to finding yourself in a more profitable business situation.

It is important to act quickly though. As Moretti advises: “Waiting lists for the most popular franchises can be long, but you can bump yourself up on that list if you are willing to relocate to areas the company has outlined as desirable.”

One of the most popular stories that our licensed funding specialists hear on a regular basis here at Synergy Merchant Services involves the nightmare that Canadian business owners go through in order to secure loans from their banks. Even though many of them have longstanding relationships with these banks, they apparently are still forced to go through a laundry list of requirements in order to even be approved for any money.

Especially in today’s economy, with it still searching for recovery from a global recession, banks have become less likely to approve Canadian businesses for loans than ever before. This has been documented a number of times on this blog, but it still seems to be something that business owners struggle with understanding.

They feel that if they have developed working relationships with banks, that they should count for something in their times of need. The truth is, however, banks are even less likely to provide money to those who actually need it. Instead, the more a business owner can prove that he or she doesn’t need the money, the better the chances are that he or she will be approved to get some. Weird, right?

NewYorkLife.com, the website of a New York-based insurance company, puts it this way: “Want to feel stupid, incompetent, and a bit foolish? That’s how some business owners describe themselves after meetings with lending institution loan officers. Like beggars, they complain, they must plead their cases, jump through hoops and just about put up their first-born child as collateral.”

Needless to say, it is difficult for business owners to get bank loans on both sides of the border. Securing a line of credit is becoming more and more commonly known to be a “frustrating ordeal”. As the site notes, it is often “hard for lenders and business owners to see eye to eye.”

As they say, “the only thing lenders care about is your ability to repay the money”. This is why collateral is often requested of a business owner trying to secure a loan. It is a bank’s way of saying that if you have any trouble paying them back, they will own something that belongs to you. The risk is placed on the shoulders of the business owner, not the lending institution.

This is why Synergy is so proud of its policy to receive a payment only once a business makes a sale. The numbers that matter to us the most are the ones that represent your average monthly credit and debit sales volume.

As NewYorkLife.com mentions however, “most lenders are number crunchers. They’ll want to study the figures. Put together a balance sheet or income statement and a summary business plan (description of why you want the money).” We still can’t understand why so many entrepreneurs go through all of this hassle.

Thankfully, many of our clients have the opportunity to add another story to their portfolio once they have received a quote for a merchant cash advance from Synergy. That, of course, being how simple and easy the process was and the fact that they are relieved that there are other options to attain working capital out there.

Synergy Merchant Services provides merchant cash advances to small and medium-sized businesses all over Canada. We take great pride in developing relationships with business owners who have put their time and energy into growing their companies. Some owners, however, did not necessarily begin their own businesses. Many buy their already-established businesses in an effort to take them to new levels within their respective marketplaces.

As Freelance Writer, Nate Waymire writes on Business.com, many business owners find great success in purchasing an existing franchise. He writes that this endeavor can be very beneficial and may come with many advantages. One of them, says Waymire, is the fact “that the franchise owner has an invested interest in your success.”

As a result, help is generally offered to those who purchase franchises as the company selling them prospers when the franchise owner succeeds. Often, tips for business plans and marketing strategies are provided. Not to mention, by purchasing the franchise, you also have the established and respected name of the company helping for you to grow your already developed customer base.

Waymire also notes that, as always, being dedicated to marketing your business effectively is of great importance. Actively promoting your company should be a constant practice so that you can bring in new customers on a regular basis. He offers up a number of ways in which this goal can be accomplished.

The first, says Waymire, is to “hire seasoned professionals who can devise a specific marketing plan for your business franchise.” Of course, utilizing the skills of talented and experienced workers within your selected field will only add to the stability of your business. It is important to ensure that they are knowledgeable about your brand and are dedicated to the success of the company overall.

The second tip offered is to “send direct mail postcards to advertise your business when you open a franchise.” By today’s standards, a lot of advertising is done online, and this, of course, is still a cost-efficient and effective option. However, the good old mailer is still a popular source of plugging a company as it provides a tangible piece of advertising that potential customers can keep and remember.

Waymire also suggests that those who buy franchises “work with direct mail marketers who know how to advertise your franchise opportunity.” That way, you may focus on a specific target of clients in a certain demographic. Ensuring that you secure great contacts is a surefire way to develop a strong and constantly growing consumer base.

Advises Waymire: “Hire an advertising agency to promote your small business franchise opportunities.” He writes that they “will examine what your business has to offer and what your target customer base is. Once they have established the key group to market to, they will devise a plan to reach them and make sure they are aware of who you are and what you have to offer.”

Evidently, one can always use help to be successful. When you buy a franchise, you have already afforded yourself the opportunity to profit from an already-popular brand. Getting those extra helping hands to assist in the further development of your franchise will only increase your popularity and success. Not to mention, it will also make you eligible to get that extra capital to grow the business through a merchant cash advance from you-know-who!

One thing that we are always mindful of at Synergy Merchant Services is to never make the bold mistake of claiming that we are “better” than a bank. We leave it up to each and every one of our clients to make that determination for themselves. “Better”, of course, is an opinion.

We do, however, happily assure our clients that the process of attaining additional working capital through our merchant cash advance program is quicker, easier and more convenient than a bank. And once they go through the simple steps to get their cash advances, they often are the ones telling us that it was a “better” experience than what they were used to.

In addition, many of our clients find that not only is the process of securing a bank loan a long and laborious one, but it is much more difficult to be approved in the wake of the recent recession. That being said, it is not uncommon for us to develop new client relationships with disgruntled Canadian business owners who were turned away from their banks last year.

In 2010, it seems as if the reins are not getting any looser. The QMI Agency reports today that The Bank of Canada “has no plans to further ease up credit, even though small business owners face a tighter lending environment as the recovery progresses.”

In fact, Canadian business owners will face “some modest further tightening” in available credit according to Bank of Canada Deputy Governor, Pierre Duguay in a speech to the Levis Chamber of Commerce in Quebec earlier today. This revelation comes in spite of the fact that in the second half of 2009, it appeared as if lending policies towards Canadian businesses were loosening up.

According to the QMI Agency report, “Duguay also said the strength of the loonie and the low absolute level of U.S. demand will also continue to act as significant drags on economic activity.”

Synergy, on the other hand, looks forward to continuing to develop even more relationships with Canadian business owners throughout 2010. We believe that a merchant’s Visa, MasterCard and Interac sales should most certainly count for something. When a business shows its ability to process credit and debit transactions, we acknowledge that as significant sign that the business can succeed in the marketplace.

Basing our cash advance amount on a business’ average monthly volume of credit and debit sales, means that no credit check is even necessary. As a result, there is no need to put any restrictions on one’s available credit. And although we are not in the business of giving out credit, we certainly give credit where credit is due.

If you are a Canadian business owner seeking additional working capital, stop waiting for the bank to get back to you in order to decline your application for a business loan. Call Synergy today, allow us to review your monthly merchant statements, and get yourself on the “quicker, easier and more convenient” path to getting the money you need for your business.

With 2010 in full swing, Canada is beginning to feel a greater sense of confidence in the nation’s economic situation. Well on the path to recovery, the nation now inhabits citizens who are planning their financial futures with a bit more scrutiny than year or so ago. In today’s edition of The Toronto Sun, P.J. Harston advises people to be cautious with their personal finances this year.

Harston suggests that playing it safe is probably the best bet informing us that there is no need to get overly worried or overly confident just yet. Budgeting should be at the top of everyone’s to do list. Improving your budgeting is the key to ensuring that you don’t overspend or find yourself in more debt.

“If you fail to plan, you plan to fail,” he reminds us. Harston insists that each of your financial decisions should be realistic. Make sure to devote the appropriate amount of funds to each of your important priorities. Proper budgeting is perhaps the most important task to accomplish if you want to ensure your finances are in good shape.

He writes: “If you fail to budget enough — or properly — you won’t have money to tuck into your RRSP; you won’t have money to put into a tax-free savings account; you can forget about investing in savings bonds and the stock market. You’ll end up shorting yourself with nobody else to blame.”

The second most important task involves reducing your debt. To do so, Harston suggests that you learn to stop spending money that you don’t have. And while this seems like common sense, many Canadians find themselves in debt simply because they put purchases on their credit cards that they are unable to pay off in full.

As a result, they find themselves paying off high balances that accrue high interest charges that seemingly never disappear no matter how many payments are made towards them. One suggestion is to apply for a “zero-interest, pay-as-you-go credit cards that you pre-load with cash and you can only use as much money as you load on to it.”

Acknowledging that having a credit card can still be very beneficial, he notes that with this type of account, one can still make hotel reservations, book a car rental or buy items online without the risk of spending money that you don’t actually have.

The moral of the story: Make it a mission of yours to carry as little debt as possible. Says Harston: “The less debt you carry — and here’s hoping you have no credit-card debt — the better off you are and you’ll continue to be moving forward in this recovering economy.”

In order to ensure that a Canadian business owner is eligible to participate in Synergy Merchant Services’ unique cash advance program, there is one very important criteria that must be met. The business must accept credit and/or debit cards as methods of payments at their locations. The program is based squarely on a company’s ability to process Visa, MasterCard and/or Interac transactions.

In this day and age, it actually amazes us that there are still merchants out there who do not have a relationship with a point-of-sale processor and therefore do not accept any of these cards as forms of payment. Interestingly, The QMI Agency reports today that the use of plastic is only becoming increasingly popular in North America.

In an article posted on The Toronto Sun’s website, it was revealed that debit cards are especially becoming more widely used for everyday purchases throughout the continent. Says the report: “Debit cards are increasingly propping up the bottom lines of credit card giants MasterCard and Visa, reflecting a shift in spending habits…MasterCard reported a 25% jump in fourth-quarter profits.”

The article, in fact, goes on to note that the use of MasterCard debit cards are increasing globally. The credit card giant reports worldwide purchase transactions of $2.8 billion US last year – a 16.5 per cent jump from the year previous.

Patricia Preston, head of MasterCard’s U.S. debit product management and development division reveals that consumers are becoming increasingly comfortable with plastic. She notices that they generally tend to use debit cards for everyday purposes while credit cards are most often used for larger ticket items. The use of cash and cheques for most purchases is slowly becoming a thing of the past.

She explains that debit cards give consumers a sense of control over their spending as they acknowledge that it teaches them to only spend what they can afford. Meanwhile, as successful as MasterCard continues to be, its biggest rival Visa also reports major profits boosted by debit card use. A 33 per cent spike in profits was reported for their latest quarter.

Visa CEO Joseph Saunders agrees that a shift towards greater debit card use has helped to foster this growth. As The QMI Agency reveals: “Visa debit transactions rose 17% in the quarter that ended Dec. 31 compared to the year-ago period. Debit purchases now make up 54% of total U.S. payment volume.”

At present, Visa maintains a larger debit card presence than MasterCard although its competition remains confident that it is cutting into Visa’s market share. Nevertheless, this is all very good news for merchants who accept Visa and MasterCard as forms of payment in their establishments.

Of course, Interac or debit card usage in Canada continues to be very popular. We strongly advise any merchant not currently accepting plastic to look into getting a payment processor as soon as possible. Your acceptance of plastic will greatly increase your sales and obviously allow you to then take advantage of Synergy’s merchant cash advance program.

Get swiping!

Last year, the Canadian economy took a great hit due to the global recession. As a result, the Canadian news media was wrought with stories about job losses, bankrupt businesses and financial despair for a good portion of the population. With the turn of the decade however, the nation appears more optimistic than it has been in over a year about the future of Canada’s economic status.

The Synergy Merchant Services Blog has kept on top of a number of surveys that were conducted over the course of 2009 that took a look at the feelings among Canadian business owners and their views about either the decimation or growth of their staff. Today, the QMI Agency reported on The Toronto Sun’s website that small businesses are becoming increasingly optimistic about their hiring practices in the first half of 2010.

According to the report: “Three-quarters of business owners in this country said staffing levels will remain unchanged over the next six months and another 22% plan to hire in near term. Only 4% plan to slash employees in the first half on 2010.” It goes on to note that employers intend on investing more in their businesses this year as well.

The success of small businesses in Canada is no small deal. The QMI Agency reveals that small business makes up a whopping 98 per cent of Canada’s 2.3 million businesses. They are, says the report, “the backbone of the national economy”.

The Synergy Merchant Services team remains proud of the fact that they have worked diligently to ensure that numerous small business owners throughout the nation have our innovative merchant cash advance program to thank for assisting the growth of their companies. We are even prouder of the fact that we have had the pleasure of developing strong working relationships with Canadian entrepreneurs who are such huge parts of what drives the national economy.

Derrick Ragland, the global head of Business Banking at HSBC acknowledges the importance of small businesses throughout the world in the strengthening of the world’s financial situation after the recent crisis.

Said Ragland: “There is a rebalancing of the world economy, and emerging markets are becoming more and more important as a driver of growth,” said Derrick Ragland, global head of Business Banking at HSBC…Small businesses are at the heart of this growth, driving local job creation, investment and productivity.”

Synergy provides working capital to small to medium-sized businesses all over Canada. If you process Visa, MasterCard and Interac transactions at your location, we would love the opportunity to offer you a free, no obligation quote for a merchant cash advance in the hopes that we may assist your business in helping to grow both the national and global economy that much more.

Having developed great relationships with numerous business owners all throughout Canada over the past several years, there is a trait that we have come to realize binds them all. Owners of small to medium-sized business are very detailed, determined and diligent when it comes to making successes out of their companies. They are all bound by “The Three D’s”, if you will.

In yesterday’s edition of The Toronto Star, however, an article highlighted the fact that there is a missing “D” in the minds of business owners. Apparently, typical entrepreneurs generally have mapped out each aspect of their businesses with the lone exception of what they will do when they are done. (The fourth “D”, we suppose).

Interestingly, most business owners do not contemplate their retirement. While they are able to make crucial decisions about their businesses at present, it appears as if most have no plans for what will take place with their businesses once they retire. Notably, a BMO survey, that was released last fall, found that half of small business owners over the age of 45 plan on retiring in the next ten years.

Says Tina Di Vito, director of retirement strategies for BMO Financial Group: “If you ask a business owner about their business plan, or where they want to take their company, they’ll be able to explain it because they have to have that information prepared when they go to the bank for financing…But if you ask that same business owner about his or her plans for retirement, they probably would not even have started thinking about it.”

It makes one wonder how entrepreneurs neglect to contemplate what will happen when they leave the businesses that they have worked so hard to create, build and help flourish. The survey found that an astounding “81 per cent of owners do not have a formal succession plan in place (and) as many as 40 per cent said they plan to just shut down the company when it’s time to retire.”

Di Vito notes that this type of improper planning can have drastic effects on the economy. The closing down of businesses, she says, can severely impact their respective communities. Of course, her recommendation is for business owners to begin seriously thinking about their successors once they retire.

Needless to say, owners should consider the amount of time, energy and money that they have invested into their businesses so that they do not let it all go to waste. They are encouraged to build an advisory team to help with both the personal and business side of retirement, perhaps utilizing the expertise of a lawyer, accountant or financial planner.

Clearly, there are very important decisions for business owners approaching their retirement ages to make. They include whether or not the company will be sold, passed on to family members, split into pieces or dissolved altogether. Such planning is crucial and as such, should not be taken lightly.

With the recent tragedy that is taking place in Haiti, both Canadian citizens and businesses have been donating generously towards helping those in the impoverished nation who so desperately need it. Since last Tuesday’s earthquake, donations have been made by Canadians from all over the country to help the Caribbean nation with the relief effort.

And while donating money towards this cause is a very noble and generous action, may business owners rightly consider the benefits that such donations may have for their businesses. In a December 2009 article in The Toronto Star, the many benefits associated with small businesses giving to charity were discussed.

According to the article, experts believe that companies who donate to charities are not only generous but are also making good business sense. Becky Reuber, professor of strategic management at the University of Toronto’s Rotman School of Management, believes that donating can raise a small company’s profile in the community.

“You might get some media coverage from it, which would bring attention to your business,” says Reuber, noting that involvement in the community can allow small business owners to gain access to networks that “could play off…later on.”

Boosting employee morale is another benefit to giving a portion of your profits to charities, according to Eileen Fischer, a marketing professor who holds the entrepreneurship and family enterprise chair at York University’s Schulich School of Business.

Says Fischer: “There’s a sense that employees want to feel they are part of something that matters to the world.” She adds that creating relationships with charities can “make the workplace a much more meaningful place for employees. So it may be easier to attract employees and…keep employees.”

Fischer also believes that donating to worthy causes can help set your company apart from its competitors. Supporting non-profit organizations, she says, may help reinforce your brand.

The Toronto Star article notes that some business owners have personal reasons for donating to charities which are generally the most important reasons to do so. Charles Bybelezer, president of S.I.R. Waters International, donates a portion of his earnings from ELLE Water to the Canadian Cancer Society. He does so in support of breast cancer research because his mother and grandmother are breast cancer survivors.

Meaning “she” in French, ELLE water bottles are decorated with pink ribbons which are associated with breast cancer awareness. Five percent of all proceeds from the sale of these bottles are designated towards his charitable donations.

It is never a bad idea to consider donating a portion of your proceeds to a charity of your choice. Needless to say, the benefits of doing so are plentiful. For both personal and professional reasons, it may be one of the most important business decisions you can make.

One of the greatest benefits of participating in Synergy Merchant Services' cash advance program is the avoidance of an accruing interest rate. Without having to worry about a balance accumulating interest, business owners across Canada may rest assure that they will never find themselves in a position where their account is in default.

Late payments and their associated fees are non-existent. Being considered “past due” is unheard of. Since attaining a merchant cash advance does not involve credit, a business owner's credit score does not become affected. If only the program could be extended to the every day consumer.

Alas, that is not the case. Today, The Canadian Press reported that, unfortunately, a startling majorityof Canadian credit card bills are going unpaid, pushing cardholders into a state of delinquency. According to the report, nearly 60 per cent of Canadian credit card debt is being written off by issuers of the credit.

Citing a report from the quarterly Moody's Canadian Credit Card Index, The Canadian Press reveals that the number of delinquent accounts, which are determined by payments that are 30 days past due, rose by 23 per cent in the April to June period of this year, compared to the same time last year.

Evidently, the increasing financial stresses brought on by the global recession continues to take its toll on Canadian credit card users. Charge-offs – when a creditor gives up on collecting past due debts by charging them off its books – are reaching an all-time high.

Currently, the charge-off rate is at 4.8 per cent, a 57 per cent jump from the 3.07 per cent rate achieved in last year's second quarter. According to Moody's: “The intensity of the current recession has led to charge-offs that have exceeded previous cyclical highs by a relatively wide margin.”

Even more harrowing is the realization that the ever-increasing charge-off rate is simultaneously increasing along with Canada's unemployment rate – at 8.7 per cent, as of August.

Moody's expects that Canada's rate of unemployment will hit 9.6 per cent by 2010's second quarter. Not surprisingly, the charge-off rate is expected to rise along with it. Needless to say, this only means more Canadians will be developing worse and worse credit.

One of the most common phrases we hear from our clients at Synergy Merchant Services is “my bank turned me down”. Ironically, many business owners throughout Canada who have long developed relationships with financial institutions find that they are not being approved for small business loans.

Many owners go so far as exclaiming that they feel “betrayed” as they thought that having banked with these financial institutions for so long would have been a reason that they could be trusted. In many cases, these same banks had been advertising their small business loan programs to these owners only to have the eventual application go unapproved.

“Anyone who has looked into getting a bank loan these days knows they are hard to come by,” says Kayce T. Ataiyero, in the July 10, 2009 issue of The Chicago Tribune, “The poor economy and the resulting rise in loan defaults have scared banks into setting the credit bar so high that even those with decent FICO scores are having trouble getting approval,”

Whatever the reason, it is becoming more and more apparent that if a small to medium-sized business owner has intentions of expanding his or her business, the traditional bank loan may no longer be looked upon as the first source of assistance.

Owner of the first Chili'sGrill & Bar in Ontario, Heath Everett knows this all too well. In Andrea Hopkins' June 29, 2009 article on Portfolio.com, she recounts Everett's experience with trying to secure a business loan from one of Canada's banks.

“I approached all of the major Canadian financial institutions, the big banks, and with the exception of RBC none would even entertain a sit-down conversation with me,” Everett said. “(They said) restaurants are too risky.”

If there is one thing that Synergy Merchants Services can guarantee, it is that a free quote is the least we can provide to Canadian business owners who have been processing credit and debit transactions in their establishments. It is important that business owners looking to grow their businesses are, at the very least, afforded the opportunity to know how much they may be approved for.

While there is, of course, a few points of criteria that must be met to determine eligibility for the program, Synergy maintains that the process of attaining extra capital through a merchant cash advance is proving to be a lot less painstaking than going to a bank for a loan. Evidently, such loans are getting harder to come by.